- Hans Weber
- December 6, 2023
Czech Republic’s Industrial Production Shows Slight Acceleration in May, Led by Car Manufacturing
Industrial production in the Czech Republic exhibited a modest acceleration in year-on-year growth, reaching 1.4% in May compared to the previous month’s 1.2%. The automotive sector continued to drive this growth, while most other industrial sectors experienced a decline. However, industrial orders witnessed a decline, with a 4.4% year-on-year decrease in their value.
The Czech Statistical Office (CSU) released these findings on its website, highlighting that industrial production expanded by 1.6% month-on-month.
Radek Matejka, Director of the Department of Agriculture and Forestry, Industry, Construction, and Energy at the CSU, explained, “The production of motor vehicles played a key role in the slight growth of industrial output, with production increasing on a monthly basis. Both automobile production and the manufacturing of vehicle parts experienced growth. Planned maintenance and reduced production in coal-fired power plants contributed to the decline in electricity, gas, and heat production.”
Mining and quarrying experienced a significant decline of one-fifth compared to May of the previous year, primarily due to a reduction in brown coal mining. Other sectors that saw double-digit declines included the production of non-metallic mineral products, the chemical industry, primary metals, and foundries. Conversely, the production of other means of transport and equipment witnessed a notable increase due to the fulfillment of long-term orders.
Foreign orders dropped by 4.7% year-on-year in May, with domestic orders also declining by 3.9%. The value of new industrial orders remained stagnant compared to April.
In terms of employment, the average number of industrial employees decreased by 1.7% year-on-year in May. However, their average gross monthly nominal wage saw a notable increase of 11.1%.
While the Czech Republic’s industrial production showed a slight acceleration in May, the decline in industrial orders is cause for concern. The performance of the automotive sector continues to be a positive driving force, but other sectors are facing challenges. Efforts to stimulate both domestic and foreign orders will be crucial in maintaining industrial growth. Furthermore, attention must be given to the declining employment numbers to ensure the well-being of the industrial workforce in the country.
Article by Prague Forum